Lotte Chilsung Beverage (005300) Q4 2024 earnings summary

Executive summary

• Achieved record full-year consolidated sales of 4.02T KRW in 2024, up 24.8% year-over-year, driven by overseas expansion and strong performance in the Philippines.

• Operating profit declined 12.2% year-over-year to 185B KRW, with net profit down 64% to 60B KRW, impacted by higher costs and one-off items.

• Overseas business saw robust growth, with sales up 9% and operating profit up 147% year-over-year, led by the Philippines, Myanmar, and Pakistan.

• Domestic beverage and liquor segments experienced sales declines in Q4, but liquor posted a significant operating profit rebound.

Financial highlights

• Q4 consolidated sales rose 0.5% year-over-year to 923.3B KRW; operating profit increased 15.6% to 9.2B KRW.

• Q4 net profit swung to a loss of -21.7B KRW from a profit of 35.3B KRW a year ago.

• Full-year beverage sales fell 2.2% year-over-year; liquor sales rose 1.2%.

• Overseas subsidiaries delivered 9% sales growth and 147% operating profit growth for the year.

Outlook and guidance

• 2025 consolidated sales guidance: 4.31T KRW (+7.1% year-over-year); operating profit: 240B KRW (+29.8%).

• Overseas sales expected to grow 16.5% in 2025, with focus on profitability and capacity expansion in the Philippines, Myanmar, and Pakistan.

• Mid- to long-term (2028) targets: revenue 5.5T KRW, OPM 9.1%, ROE 15%, dividend payout ratio 30%.